What Is Arista Networks (ANET) and Why Two Customers Take 42 Percent of Its Revenue

Arista Networks builds the Ethernet switches that move traffic inside AI and cloud data centres, and two end customers took 26 percent and 16 percent of its revenue in the year to 31 December 2025. Those two filed percentages sum to 42 percent of a $9.01 billion year.

Search the filings for an AI revenue line and you won't find one. The FY2025 annual report uses the term AI 119 times, and the June 2026 quarterly report uses it another 76 times. Revenue still grew 37.7 percent to $3.04 billion in the June 2026 quarter, and gross margin fell to 62.9 percent from 65.2 percent a year earlier.

Arista Networks (ANET) at a Glance

What Is Arista Networks and What Does the Company Sell?

Arista Networks (ANET) is a Delaware-incorporated company run out of Santa Clara, California, and its common stock trades on the New York Stock Exchange. It builds high-speed Ethernet switches and routers and runs every one of them on a single software image called EOS. Product sales delivered $2,605.2 million of the $3,035.7 million booked in the June 2026 quarter, and services delivered the other $430.5 million. The Americas supplied 77.0 percent of that revenue. Buy Arista Networks stock and you own a hardware business selling into a very small number of very large data centre builders.

The company groups its network into four domains it calls AI Centers, Data Centers, Campus Centers and WAN Centers. On 30 June 2025 it bought the VeloCloud wide-area networking business from Broadcom for $300.0 million in cash.

Most crypto traders meet this name through a perpetual contract and never touch the underlying share. That makes what tokenized stocks are a useful thing to have straight before you size a position.

Where Is the AI Revenue Number in Arista's Filings?

There isn't one. The FY2025 annual report uses the term AI 119 times, and the June 2026 quarterly report uses it another 76 times. Neither document attaches a dollar figure to a single one of them.

The structural reason lives in the accounting policy. Arista reports as one reportable segment, because its chief executive reviews the numbers on a consolidated basis. The only revenue splits the filings publish are product against service, and the Americas against Europe, Middle East and Africa against Asia-Pacific. An AI line would have to be a voluntary disclosure, and the company has chosen not to make one.

What the filings do carry is the risk. The FY2025 annual report warns shareholders that customers "may overestimate demand for their AI build outs" and then cancel or cut their purchase commitments with little notice. The company puts its largest exposure in that sentence, and the sentence carries no figure either.

The absence is the finding, and any AI revenue number you have read about Arista came from somewhere other than a filing.

How the AI Build-Out Shows Up as Margin Compression

Gross margin is where the build-out lands. Arista gross margin came in at 62.9 percent for the three months to 30 June 2026, against 65.2 percent for the same period of 2025. Across the full half it ran 62.4 percent against 64.5 percent. The company states the cause itself, calling out "an increased proportion of our sales to large end customers who generally receive higher discounts."

Product is where the squeeze bites. Product revenue of $2,605.2 million carried $1,047.5 million of product cost in the June 2026 quarter, a product gross margin of 59.8 percent against 62.3 percent a year earlier. Service margin barely moved. Growth and margin pulled in opposite directions across the same three months, and both readings come from the same filed income statement.

Gross profit still grew, up 32.8 percent to $1,910.3 million, because a 37.7 percent revenue increase outruns a 2.3 point margin loss. Anyone trading the equity through TradFi futures on a crypto venue is trading both of those facts at once.

Why Do Two Customers Take 42 Percent of Arista's Revenue?

The annual report states it plainly. Sales to one end customer represented 26 percent of total revenue for the year ended 31 December 2025, and sales to the other represented 16 percent. Arista names neither of them anywhere in the document. The 42 percent in the headline is the sum of those two filed percentages, and both were rounded before the filing printed them.

Arista customer concentration has moved across three filed years, and it isn't a straight line. The pair took 39 percent in 2023, fell back to 35 percent in 2024 and returned to 42 percent in 2025. The 2025 reading is the highest of the three.

Two disclosures sit close together in these documents and they're easy to merge by mistake. Arista describes the large end customers taking higher discounts in one section and the two customers above 10 percent in another. No filing anywhere in the set says those two groups are the same buyers.

The concentration reaches the balance sheet too. Arista's top two resellers accounted for 52 percent of total accounts receivable at 31 December 2025, up from 50 percent a year before. A trader reading ANET stock through a perpetual is reading a company whose cash collection depends on two intermediaries.

Arista has filed that customer number only through the year to 31 December 2025, and the 20 September 2026 listing date falls eight months and twenty days past it.

What the $9.7 Billion Purchase Commitment Shows

The AI build-out does have a dollar figure in the filings, and it's on the buy side. Arista carried $9.7 billion of non-cancellable purchase commitments off its balance sheet at 30 June 2026, and $9.4 billion of it lands inside twelve months. Those are orders the company has already placed with its contract manufacturers and cannot walk away from.

The supporting lines move the same way. Deposits with those manufacturers rose to $124.4 million at 30 June 2026 from $53.0 million at 31 December 2025. Inventories climbed to $2,535.3 million from $2,247.1 million, and the evaluation inventory inside that figure rose to $616.0 million from $403.7 million. Deferred revenue reached $6,865.9 million across current and non-current, against $5,372.4 million at the turn of the year.

Read those lines together and you get the AI story the accounts will actually tell. Arista is buying hardware ahead of orders it expects, booking revenue it cannot yet recognise and handing discounts to the buyers driving the whole thing. Anyone holding a perpetual futures contract with no expiry date on ANET carries all of that with no delivery date of their own.

How Do ANET Perpetual Futures Trade on Phemex?

Phemex listed ANETUSDT at 10:00 UTC on 20 September 2026 with a maximum of 10x leverage and funding every eight hours. Each contract is worth one ANET and settles in USDT. The contract went live alongside six other US stock perpetuals on the same morning.

The first bar is the whole record so far, and it runs fourteen hours because the listing opened at 10:00 UTC. ANETUSDT opened at 200.70, printed a high of 202.25 and a low of 198.93 and closed at 200.83, an open-to-close move of 0.06 percent. Turnover across the bar came to $6,789.59 on 33.80 contracts.

That bar is not a session of the underlying. The US cash equity market was shut all weekend, so the 20 September mark priced a stock nobody could trade on an exchange. Our explainer on why TradFi perpetuals move when the US market is shut walks through the index and funding mechanism that sets the mark.

The seven stock perpetuals listed that morning turned over $126,967 between them, and ANETUSDT took $6,789.59 of it. The same question came up for a stock perpetual priced with the cash market closed when that contract opened its own series.

ANET perpetual futures give you a 10x wrapper on a company whose last filed customer disclosure covers the year to 31 December 2025 and whose last margin print covers the June 2026 quarter.

Frequently Asked Questions

Does Arista report AI revenue separately?

No. Arista operates as one reportable segment, so the only revenue splits it publishes are product against service and three geographies. FY2025 revenue came to $9,005.7 million with gross profit of $5,768.7 million, a 64.1 percent full-year margin.

Who are the two customers?

The filings never name either of them, in the annual report or in the quarterly. They do give the history, and the split ran 21 percent and 18 percent in 2023 before it reached 26 percent and 16 percent in 2025.

What did Arista earn in the June 2026 quarter?

Net income of $1,212.9 million, and $2,235.8 million across the first half. Interest income alone contributed $122.4 million in the quarter, up from $90.4 million a year earlier.

How much leverage does the ANET contract carry?

A maximum of 10x. Funding settles every eight hours, and Phemex caps open interest on the contract at 1,000,000 ANET.

Bottom Line

A number that doesn't exist is still tradeable information. Arista sells into the biggest capital spending cycle networking has seen and will not tell you how much of its revenue that cycle carries. The only honest read on its AI exposure is the discount it hands its largest buyers and the $9.7 billion it has committed to its suppliers. Watch the margin line in the next quarterly report. If it falls again, the mix is still tilting toward the two buyers who already take 42 percent.

Disclaimer: This article is for informational purposes only and is not financial advice. Cryptocurrency trading involves substantial risk. Always do your own research before making investment decisions.